When you make Aliyah, the Israeli government extends a substantial package of Oleh Chadash benefits and rights to help you absorb into the country.
These entitlements are not charity — they are rights guaranteed by Israeli law to every person who immigrates under the Law of Return. But the system is complex, the deadlines are real, and a surprising number of Olim leave significant money and benefits on the table simply because they didn’t know what they were entitled to or missed a registration window.
This guide is a complete reference to every major benefit available to new Olim, how to access each one, and the critical deadlines you cannot afford to miss. The full package of aliyah benefits — including tax exemptions, customs waivers, housing grants, and financial support — is one of the most generous immigration packages of any country in the world. Here’s exactly what you’re entitled to.
Your Starting Point: The Teudat Oleh
Everything starts with your Teudat Oleh — the immigrant identity document issued to you at Ben Gurion Airport on the day you arrive. This document is the key that unlocks every benefit described in this article. Your Teudat Oleh includes your Israeli ID number (Mispar Zehut), your date of Aliyah, and your immigrant status. Keep it safe — you will be asked to present it dozens of times in your first year. All benefit windows and deadlines are calculated from the Aliyah date recorded on this document.
The Absorption Basket (Sal Klita)
The sal klita (absorption basket) is the most immediate financial benefit you receive as a new Oleh. It is a government-funded package of cash payments designed to support you through your first year in Israel while you find your feet, learn Hebrew, and establish income. Approximate totals over the first year:
- Single Oleh: approximately NIS 20,000–22,000 total
- Couple: approximately NIS 28,000–32,000 total
- Family with children: amounts increase per child
The sal klita is administered by the Ministry of Aliyah and Integration (Misrad HaKlita). Critical deadline: register with Misrad HaKlita and open an Israeli bank account within 90 days of your Aliyah date to receive the full package.
Income Tax Exemptions on Foreign Income (Olim Taxation)
Under Israeli tax law, new immigrants receive a 10-year exemption on income earned from foreign sources from their Aliyah date. This is the most financially significant of all the Oleh Chadash tax benefits for anyone with foreign income, investments, or business interests.
What this covers in practice:
- Income from foreign employment or freelance work performed outside Israel
- Foreign investment income (dividends, interest, capital gains on foreign assets)
- Rental income from properties abroad
- Pension income from a foreign pension fund
- You are not required to report foreign income to the Israeli Tax Authority during this period
For Olim who continue to work remotely for US, UK, or other foreign employers after moving to Israel, understanding the rules around olim taxes is critical. The exemption applies to foreign-sourced income — income earned from work performed outside Israel. If you are physically in Israel doing the work, that income is Israeli-sourced and taxable from day one, regardless of where your employer is based. Consult a tax advisor who specialises in Oleh taxation before filing your first Israeli tax return. See our full Israeli tax system guide for Olim for a detailed breakdown.
Customs and Import Exemptions
Household Goods and Personal Effects
You may import your household belongings — furniture, appliances, clothing, electronics — free of customs duties and purchase tax within the first 3 years of your Aliyah. This is a one-time exemption covering reasonable personal-use quantities across multiple shipments within the 3-year window.
One Motor Vehicle — the Oleh Chadash Car Benefit
The Oleh Chadash car benefit is one of the most valuable single entitlements in the package. You are entitled to import one private motor vehicle with a significant reduction in customs duties within the first 3 years. Israeli car prices are among the highest in the world due to standard import taxes (typically 80–90% on top of the vehicle value), so the Oleh Chadash car benefit can save NIS 30,000–80,000 depending on the vehicle. The vehicle must have been registered in your name abroad for at least 6 months before your Aliyah date. Alternatively, you can use the benefit to purchase a new car in Israel at a reduced customs rate.
Professional Equipment
Professionals may import their tools and equipment — medical instruments, musical instruments, computers and peripherals, and other trade tools — free of customs duties within the first 3 years.
Free Hebrew Language Study — Ulpan
Every new Oleh is entitled to 500 hours of free Hebrew language instruction (Ulpan) valid for 5 years from your Aliyah date. Available formats include full-time Ulpan Etzion (5-month intensive), municipal evening classes, workplace Ulpan, and government-recognised online programmes. Register at your nearest Misrad HaKlita office — popular programmes fill up quickly.
Healthcare — The Four Kupot Cholim
Israel’s National Health Insurance Law guarantees every resident access to a comprehensive basket of medical services through one of four Kupot Cholim: Clalit (largest, covering about half of Israel’s population), Maccabi Healthcare Israel (popular among English-speaking Olim, strong digital services), Meuhedet Israel (mid-size, good in Jerusalem), and Leumit (competitive supplementary pricing). Each fund also offers supplementary insurance (Mashlim) for roughly NIS 80–200 per adult per month, covering private specialist access, dental, vision, and enhanced mental health services. You have 90 days from your Aliyah date to choose your Kupat Cholim — see our full Kupat Cholim guide for a detailed comparison.
National Insurance (Bituach Leumi) Benefits
The National Insurance Institute (Bituach Leumi) is Israel’s social security system. Key benefits include:
- Child Allowances (Kranot Yeladim): Every child under 18 receives approximately NIS 160–200/month. Not means-tested. Paid from your registration date — register at Bituach Leumi promptly.
- Maternity Benefit (Dmei Leidah): Working mothers are entitled to paid maternity leave of 26 weeks (15 fully paid by Bituach Leumi).
- Unemployment Benefit: Available if you work in Israel and subsequently lose employment, subject to minimum contribution history.
- Reduced Bituach Leumi rate for new Olim: In your first 12 months after Aliyah, your Bituach Leumi contribution rate is significantly reduced. Register promptly — this discount applies from registration, not retroactively.
Housing Benefits
Zikuy Mashkanta — Mortgage Grant
One of the most valuable and most commonly missed Oleh benefits. New Olim are entitled to a government mortgage grant (Zikuy Mashkanta) when purchasing their first home in Israel — a direct subsidy that does not need to be repaid. Grant amounts vary based on family size, location (higher grants for the periphery), and Aliyah date. Critical deadline: must be claimed within 7 years of your Aliyah date. After that window, the entitlement lapses permanently.
Purchase Tax Reduction (Mas Rechisha)
New Olim receive a reduced purchase tax (Mas Rechisha) rate of 0.5% on the first ~NIS 2 million of their first home purchase in Israel — representing savings of tens of thousands of shekels compared to non-Oleh rates or non-resident rates. This benefit expires 7 years after your Aliyah date. See our property buying guide for the full picture.
Professional License Recognition
If you hold a professional licence abroad — doctor, dentist, nurse, lawyer, engineer, architect, teacher, or psychologist — Israel has a formal process for recognising your foreign qualifications. Managed by Misrad HaKlita in coordination with each profession’s licensing body. Start the recognition process early, ideally before you arrive.
Key Deadlines at a Glance
- Within 90 days: Register with Misrad HaKlita + open Israeli bank account (sal klita)
- Within 90 days: Choose Kupat Cholim — or you’re auto-assigned to Clalit
- First few weeks: Register with Bituach Leumi — child allowances and reduced rate paid from registration date
- Within 3 years: Import household goods, vehicle, and professional equipment duty-free
- Within 5 years: Use 500 free Ulpan hours
- Within 7 years: Claim Zikuy Mashkanta mortgage grant + mas rechisha reduction on property purchase
- Within 10 years: Foreign income tax exemption applies
How Olim Paveway Can Help You Claim What You’re Entitled To
Taken together, a family making Aliyah can access well over NIS 100,000 in direct financial benefits of moving to Israel over their first decade, plus the value of tax exemptions, customs savings, and free healthcare. But claiming all of it requires knowing what exists, registering in the right order, and meeting deadlines the government does not proactively remind you about.
Olim Paveway works with English-speaking families from the US, Canada, the UK, South Africa, and Australia to make sure nothing falls through the cracks. If you’re planning your Aliyah or have already arrived and want to make sure you’ve captured every entitlement, get in touch — we’d be glad to walk through your specific situation.